2016 (11) TMI 618 - HC - Customs

Incremental Exports Incentivisation Scheme (IEIS) - promotion of exports - trade and export of fish meal - Held that - a perusal of the communication dated 1-12-2014 would disclose that the respondents have informed the petitioner that the amount paid is after restricting the growth rate to 25% as per the public notice dated 25-9-2013. Insofar as the rejection, the respondents have neither adverted to the documents and the details that had been furnished by the petitioner nor any reasons for application of mind in that regard is indicated in the communication at Annexure-J dated 1-12-2014 - the communication dated 1-12-2014 would not be sustainable. The rejection as made therein is set aside. The respondents shall now take note of the documents submitted by the petitioner, keep in view the scheme and thereafter take a decision and communicate the decision taken to the petitioner.

Summary

Issues:
Challenge to order dated 1-12-2014 regarding the grant of export scrip under Incremental Exports Incentivisation Scheme (IEIS).

Analysis:
The petitioner, a Merchant Importer dealing in fish meal, challenged the order dated 1-12-2014 seeking the full quantum of exports under the IEIS scheme. The petitioner claimed eligibility for an incentive amounting to ?45,28,896 but was granted only ?3,70,007 without reasons provided for the reduction. The petitioner contended that all necessary documents were submitted, and the rejection lacked justification.

Upon review, the court found that the respondents failed to consider the documents and details submitted by the petitioner while rejecting the claim. The court noted that the payment made was restricted to 25% of the claim without further scrutiny. The respondents were directed to reevaluate the documents, adhere to the scheme's guidelines, and communicate a decision within two months from the order's date.

In conclusion, the court set aside the rejection dated 1-12-2014, instructing the respondents to reconsider the petitioner's documents, follow the scheme's provisions, and communicate a decision promptly. The petition was disposed of accordingly, emphasizing a fair and expeditious review process for the petitioner's claim under the IEIS scheme.